Through the fog
With growing pressure from the Financial Services Authority for brokers to become more open to commission disclosure regulation, Sarah Hills weighs up the necessity and financial cost of a more transparent insurance industry
Commission disclosure has been on the radar of the Financial Services Authority (FSA) for some time. The subject of whether it should be mandated or not has always been topical, even before Eliot Spitzer's exposure of bid rigging in the US in 2004. However, the FSA decided that the market had not come forward with an industry-led solution, and launched a forensic review to look at the possibility of regulating commission disclosure.
Along with concerns about transparency, the other issues
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